Peter Smith
Nvidia (NVDA) demonstrated its characteristic resilience on Monday, shaking off morning weakness to finish in positive territory. The chipmaker's stock navigated through a turbulent trading session, ultimately proving that investor appetite for the AI leader remains intact despite broader market uncertainties.
Nvidia Bounces Back Into Green Territory
Nvidia shares recovered from early losses to close at $177.92, up 0.06% for the day. The stock faced pressure during morning trading but found its footing as institutional buyers stepped in during the afternoon session. According to unusual_whales, Nvidia managed to stay "green on the day," showcasing the stock's ability to absorb selling pressure and maintain positive momentum even during challenging market conditions.
The recovery wasn't just about price action - it reflected deeper market dynamics at play. Strong options flow provided additional support, with traders positioning for potential upside moves despite the volatile environment.
Technical Picture Shows Intraday Recovery
Nvidia's September 15th chart reveals a classic recovery pattern that traders have come to expect from the tech giant. Shares initially dropped toward $174 during early trading, testing key support levels that have held firm in recent sessions. However, buyers quickly emerged at these lower levels, creating a sharp rebound that lifted the stock back into the $177-$178 range.
The most encouraging aspect was how NVDA consolidated near its session highs into the close, suggesting accumulation rather than simple short-covering. Options activity told a compelling story with $606M in total premium and $18.2M net positive premium, indicating that traders were positioning bullishly rather than defensively. This combination of price action and options flow creates a constructive backdrop for near-term performance.
Factors Driving the Recovery
Several elements contributed to Nvidia's afternoon turnaround. The company's position as the dominant force in AI chip manufacturing continues to attract investor confidence, even when broader tech sentiment wavers. This fundamental strength provides a floor during selloffs and fuel during rallies.
Options market dynamics played a crucial role in amplifying the recovery. Heavy call option activity likely created additional buying pressure as market makers hedged their positions, contributing to the sharp afternoon reversal. Meanwhile, broader market conditions remained mixed, but Nvidia's leadership position in the tech sector helped stabilize overall sentiment and prevented a deeper decline.
Critical Levels for Trading
Looking ahead, Nvidia faces important technical junctures that will determine its near-term direction. $176 represents immediate support - a decisive break below this level could trigger another test of the $174 area where buyers previously emerged. On the upside, the $178-$180 zone presents the next major resistance hurdle. Breaking through this range would signal renewed bullish momentum and potentially open the door to higher targets.
For medium-term positioning, holding above $175 keeps Nvidia's technical outlook constructive despite ongoing volatility. This level has become increasingly important as a barometer of institutional sentiment toward the stock.
Peter Smith
